I have compared two condos in Arlington Heights side by side with their regulations open. One had a monthly management fee of $318, while the other was $494. Although the sale prices were similar, the difference in management fees amounted to $176 each month, leading to over $60,000 over 30 years.

The management fees for Arlington Heights condos range from the low $300s to around $500, depending on the listing (based on data from redfin.com). A lower management fee does not necessarily mean a better deal. The difference in fees usually stems from the level of reserve fund accumulation and the size of the facilities. Some buildings with lower fees may not have accumulated enough reserves, which could lead to the need for special assessments later on.

Illinois has attempted to amend laws regarding this issue several times. A bill to mandate reserve studies for condos and HOAs has been introduced in the state legislature in recent years, but it has yet to pass the committee stage in the 2026 session (according to ilhoalaw.com). This means that Illinois does not yet enforce reserve fund ratios or reserve studies by law, unlike Hawaii. Since this is not covered by law, it becomes increasingly important for buyers to directly request financial statements and reserve fund plans from the association to verify them.

Just because there is no law yet does not mean one can be complacent. If an association has voluntarily conducted a reserve study, buyers can request it before purchasing to check how realistic the reserve fund plan is. Conversely, if an association has never conducted a study, it is essential to inquire more thoroughly about the state of the reserves. Arlington Heights is a representative suburban area near Chicago O'Hare Airport, where older low-rise condos coexist with relatively new mid-rise buildings, leading to significant variations in financial conditions among buildings.

When comparing condo listings, the following items should be checked:

• Whether a reserve study has been conducted and the year it was last done
• Current reserve fund balance and annual accumulation plan
• Percentage of delinquent units and any ongoing lawsuits
• Rental and pet policies as stated in the regulations
• Whether the association's financial statements are publicly available

These items are directly related to mortgage assessments. Lenders also evaluate the financial health of the association, and if reserves are low, delinquency rates are high, or there are lawsuits, the condo may be classified as non-warrantable, making loan conditions more stringent (according to fanniemae.com condo project standards). For Korean families moving to Arlington Heights based on school district ratings, it is advisable to check not only the school district grade but also the association's reserve study status.

If moving from another state, it is also important to consider that property tax burdens in Illinois may differ from those in previous residences. The lower the management fee appears, the more crucial it is to verify the reasons through the regulations and financial statements, as this habit can lead to more advantageous long-term choices.

For investors considering rental income, stable suburban school districts like Arlington Heights generally have a lower risk of vacancies, but that does not guarantee profits. It is essential to examine the rate of management fee increases and the association's long-term maintenance plans to get a more accurate calculation of actual returns. For families newly immigrated from Korea and looking for their first settlement, understanding what items are included in the management fee one by one can help with future budget planning.

Tax and management fee regulations can vary by county and association, so it is advisable to check the financial documents of the specific association before making a purchase. While reviewing the regulations of each listing may seem cumbersome, it is a worthwhile process to reduce uncertainties that may arise after the contract. This article does not constitute investment or legal advice, and it is recommended to consult a real estate professional before finalizing any contracts.